Korean Job Discussion Forums

[saint_moi]

Prior to being bashed as ignorant, I'll mention that myself and all the teachers at my school have not ever done tax-returns. Thus let me shoot questions so that I could pioneer this repay campaign first thing come Monday.

1. I know Canadians are subject to some special tax terms, but we have no Canadians at my school. Hence, do all other foreign English teachers fall into an entire group then? And do all the tax-returns particulars, regulations, stipulations and all that apply to all these who fall into the non-Canadian group?

2. I myself have been at my school for 2 years exactly. Can I do a tax return for that period, or do I forfeit for possibly missing a tax-return due date of sorts?

3. How does one go about doing a tax-return in Korea? Have any of you filed tax returns and gotten payouts?

If so, then 4. what percentage? I imagine that 2 years at 2500$ a month should be quite a large cheque.

Any thoughts, comments, positive feedback or help would be greatly appreciated. Thanks.

[Japchae]

If you become a non-resident for tax purposes then you won't have to declare your income in Korea. If you do this you'll have to sever ties by cancelling credit cards, bank accounts, selling property etc. You need to show that you do not intend to return to Canada for some time. The Rev Canada site has info on this.

If you cannot become a non-resident then all of your Korean income is considered taxable, however, you do receive a tax credit for taxes paid in Korea which is usually 3%. Since Canadian taxes are higher, expect to pay at least a month's salary to the Canadian government for each year worked in Korea.

I'd suggest finding a good accountant back home to process your tax return.

[saint_moi]

Hello and thanks for the reply. It seems you were refering only to Canadian tax particulars, no? As for declaring income earned abroad, I don't know how it works in Canada, but generally if you've been living abroad for an extended period of time, you don't declare anything or pay tax when you return, primarily because you have paid tax whilst working wherever you were. Hence, I asked what are the detials in connection with filing a tax return this side for the tax paid whilst working here.

So my original post was about how to get a tax rebate here in Korea. Are we on the same page? What are your thoughts on this?

[LarrytheGiraffee]

Even if you are tax exempt in your home country, most countries still require you to file. For Americans, there is a special form 2555-EZ that you file along with your regular 1040 form.

As for getting a refund on your Korean taxes, that can be quite difficult. You can go on the Nation Tax Service website and there is a place you can click to find out what your monthly tax liability actually is. You should start from there. Then you can compare that number to what you have been told by your employer you are paying towards taxes. It seems most hagwon owners take out more than the government requires and they just pocket the extra money.

According to Korean Law, your employer has to give you a "Receipt of wages and salary income tax withholding". They have 30 days after the last day of you contract to give you the form. You can also request the form in May while you are still working for them. Again, if they are pocketing some of your money, they probably wont want to give you the form.

I recently went through this with a former employer. It took me calling several times and suggesting that I could get "other people involved" (meaning that the Tax Service will also call and ask why you arent being given a form you have a right to). I finally got the form and had proof that I had overpaid on my taxes. The same form also proved that he had cheated on his taxes (claiming that I made much less than I actually did, which allowed him to pay even less to the government). When I finally spoke to him after getting the form, he openly admitted that he had done something wrong. Within a few weeks, the money was in my account.
However, he insisted that the money he gave me was a "recruiting fee" since I had helped him find a teacher back in October. He said if he admitted that he paid me back for the extra tax money he had taken then other teachers could come after him for the same thing.

Another co-worker, I had at the time, is now trying to get his money back, but the owner is refusing to give him the proper forms. He is trying to work out another deal to pay him back, but it isnt money in the bank like mine was.

Good luck. I hope this helps in some way.

[peppermint]

I'll assume you're asking about filing for Korea, yes?

I don't know much, but I can point you in the right direction at least.

The tax help line for foreigners is 02-397-1440. the guy's english isn't great, but he's extremely patient.